The Payment of Employee Salaries Has What Effect on the Accounting

question 44

Multiple Choice

The payment of employee salaries has what effect on the accounting equation?

• A)Assets decrease and stockholders' equity decreases.
• B)Liabilities decrease and stockholders' equity decreases.
• C)Assets decrease and liabilities increase.
• D)Assets increase and liabilities decrease.

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Definitions:

Net Capital Outflow

The difference between the domestic country's total purchase of foreign assets and foreign purchases of the domestic country's assets over a specific period of time.

Currency Depreciate

A decline in the value of one currency relative to another currency, which can affect international trade and economic balance.

Purchasing-Power Parity

A theory in economics that suggests that in the absence of transportation and other transaction costs, identical goods will have the same price in different markets when prices are expressed in a common currency.

Appreciate

In economic terms, it refers to the increase in value of an asset over time.